The impact of demonetisation on car sales seems to be waning as a majority of companies, led by market leaders Maruti and Hyundai, opened the new year with a double-digit growth in January volumes.
Maruti Suzuki sold 1.33 lakh units in January against 1.06 lakh units in the same month last year. The volumes were aided by a strong demand for compact model Baleno, mini SUV Brezza, and new mini car Ignis.
Hyundai witnessed a growth of 10%, mainly on good response to SUV Creta.
M&M, however, could not report positive growth in January and its volumes slipped by 9%. Honda Cars India also reported decline in sales.
Two-wheeler companies, however, are yet to realise a full recovery as top companies such as Hero MotoCorp continued to witness double digit fall in demand.